I have just inherited $30 000 of 5 ASX listed income providing shares. Should i keep or sell and buy $30 000 of PM. P.s. at the moment i have $10 000 of PM and main financial goal is to sell some PM and upgrade to a bigger house for expanding family in two years time without increasing current mortgage. Cheers
I would suggest that the responses on a precious metals forum may be somewhat biased! This is not financial advice, but one strategy may be to buy PMs with the dividends earned from the stocks. A more important question may be whether the particular stocks you have inherited are a buy or hold recommendation themselves, or whether the specific stocks are better off being disposed of due to the outlook for the individual companies.
I'll get in an alternate view before the metals only brigade arrive... Sell all the shares and pay down your mortgage Re-draw from mortgage later when you need the money for the bigger house This ignores any CGT implications which you would have to explore first
at the moment i have $10 000 of PM and main financial goal is to sell some PM and upgrade to a bigger house for expanding family in two years time without increasing current mortgage.>>>> so, if 40K will upgrade your house - upgrade it ...
Depends all on where you see the 3 different markets going and how best to take advantage. I'd sell the shares and go half PM's ($10k silver, $5k gold) and half paying down the mortgage as I have a lot loss faith in the share market. I'd put the remaining $15k into the offset or make extra repayments. An extra $200 a week into a mortgage of $360k over a 30 year term would save more than $250k in interest and knock 15 years off the loan And pay your mortgage weekly or at least fortnightly to save a whole load more on interest. Using the figures given; Weekly repayments would save $277k over the life of the loan whereas monthly repayments would only save $116k.
depends what the shares are... banks, retail, I would sell for sure... miners, food, utilities i would keep and do like GP said.
Paying an investment advisor is a wise course, only make sure you advisor understands Austrian Economics
Gold and Silver are Cheap as chips right now. I would upgrade the house then with what's left go 50% gold 20% silver and hold the rest in cash for the unexpected. In saying that I am not an experienced all round investor and the above comments from others may be a safer bet.
Tell me what the shares are, what was originally paid for them, and I will tell you exactly what to do. Also, if your benefactor left you shares and not cash don't you think that might be a hint as to what he/she thought was the best asset?
Why not increase your mortgage, use the dividend to cover the extra repayment. Any left overs, put it in offset account or repay early. There are some good 2-3 year fix rate at below 5% out there. Just a thought.. That way you're not relying on capital gains to cover your upgrade.
+1 on 'depends' Everyone in the stock market is currently chasing yield - are the yields on your stocks sustainable? Bear in mind that sale of the shares will presumably be a capital gains event, which should be mitigated (halved) if you have held them for a year. Then there is the issue of whether you are a higher-band taxpayer, and whether the dividends have a franked component that will benefit you. There may even be a possibility of transfer into an SMSF. Around here, asking a question about whether to get into PMs is going to get you a simple answer; the real questions are 'how much' and 'when'. Putting some money into PMs seems a no-brainer, and the prices seem good right now, but not necessarily by selling your inheritance. Good luck!
Not necessarily as special rules kick in with inherited assets, but vary depending on the specific circumstances.
Morning, One must make up ones own mind. I would advise looking at history and present conditions - write them down and look at them the answer is usually obvious and depends on your age and responsibilities. Eg. Are we in financial and economic historic times? Yep Are we in completely unknown territory? Yep. Are we in deep distress? Yep. Is there a clear and or harmonious way ahead? Nope. Throughout history what has been at risk at these times? Everything. What has been at greatest risk? Any paper instrument. Debt. Any illiquid asset. Any immovable asset. Etc. - its a long list. Seriously depending on age, if I were being really conservative, I would invest some money in a garden upgrade - edible, including knowledge. Some pm - gold and silver, no numismatics - untraceable - and tell no one. Be very careful with cash - make sure you can grab some quick and keep at least a dollop hidden well away - forget the building upgrade, live with it until this pans out. Suspend extra funds going into super and divert to completely your control. Honestly, look around at what IS happening - it won't kill you to wait a couple of years too see how this resolves - the worst that can happen is you will eat some fresh veggies and be stuck with a bit of cash that earns no interest and you will have a stash of pm's. Also the kids might have to double up for a while - no disaster there, we did it years ago and are probably better off for it. The risks are here now - not someone doomsday wanking - superannuation changes, foreign massive debt, attempts to seize depositors funds, actual seizure of secure assets - this is not fiction, these are facts and they are happening now. If the tsunami comes you will need to be prepared now or get killed in the rush. Make sense? Gazza.
If you already have PM then you need to look at the quality of the shares. If you have no PM assuming you have no major debt then sell the lot and buy PM (at least 50%). The stock market is near an all-time nominal high, time to take some profit. If you have debt sell shares and pay off debt. But do buy some PM (if you don't already own some) even if it is a couple of K.
Why would you pay down a mortgage that could potentially loose alot of value / equity. When you could buy an entirely different piece of positive geared real estate generating cash flow. Pay down the mortgage with that if you wish as well as pay a seperate piece of real estate off. Your assuming that the money is there for the redraw later on. In normal times yes, but these arent normal times and i wouldnt be putting money into the ether like that.
